House Overrides Clinton On Fraud Bill

In a stinging rebuke to President Clinton, the House voted Wednesday to override his veto of a bill limiting security-fraud lawsuits. It was the first override of Clinton’s presidency, still requiring Senate action to take effect.

Republicans hailed the bipartisan nature of the 319-100 vote, with 89 Democrats joining in the move to defy the president. They also took the opportunity to slam Clinton, saying he had capitulated to trial lawyers in his surprise veto of the measure aimed at stopping frivolous lawsuits.

“The president’s strongest supporters in 1992 were trial lawyers. This was a bill to rein in trial lawyers,” said Rep. Steve Horn, R-Calif.

If the Senate follows in getting the two-thirds majority needed to override a presidential veto, the bill becomes law. Senators have not decided when they will vote.

The securities litigation bill attempts to deter so-called meritless lawsuits by giving judges power to sanction attorneys who make frivolous court filings and having defendants pay settlements according to the proportion of their guilt.